<p style=““ class=“text-align-justify“>After a bit of a mixed start early on, we are seeing stocks look more guarded now with a bit of a drop ahead of the Wall Street open later. S&P 500 futures have slipped to the lows for the day, down 16 points, or 0.4% currently. Meanwhile, Nasdaq futures are down 0.6% and Dow futures down 0.2% on the day.</p><p style=““ class=“text-align-justify“>Meme stocks stole the headlines to start the week but perhaps the sense of apprehension ahead of the key risk event tomorrow i.e. US CPI data will be the story for today.</p><p style=““ class=“text-align-justify“>Elsewhere, European indices are extending declines as well with the DAX down 1.2%, CAC 40 down 0.6%, and Eurostoxx down 1.0%.</p>

This article was written by Justin Low at www.forexlive.com.

<p>Headlines:</p><ul><li><a target=“_blank“ href=“https://www.forexlive.com/news/oil-jumps-as-russia-reportedly-suspends-oil-flows-via-southern-leg-of-druzhba-pipeline-20220809/“>Oil jumps as Russia reportedly suspends oil flows via southern leg of Druzhba pipeline</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/euro-nudges-a-little-higher-on-the-day-20220809/“>Euro nudges a little higher on the day</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/centralbank/boes-ramsden-does-not-rule-out-rate-cuts-in-the-next-year-20220809/“>BOE’s Ramsden does not rule out rate cuts in the next year</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/us-july-nfib-small-business-optimism-index-899-vs-895-prior-20220809/“>US July NFIB small business optimism index 89.9 vs 89.5 prior</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/china-military-says-it-will-continue-drills-around-taiwan-today-20220809/“>China military says it will continue drills around Taiwan today</a></li></ul><p>Markets:</p><ul><li>EUR leads, CAD lags on the day</li><li>European equities lower; S&P 500 futures down 0.2%</li><li>US 10-year yields up 3.6 bps to 2.80%</li><li>Gold up 0.1% to $1,791.13</li><li>WTI crude up 1.3% to $91.91</li><li>Bitcoin down 3.1% to $23,320</li></ul><p style=““ class=“text-align-justify“>It was a quiet session with little in terms of headlines or narratives for market participants to work with. The lull is a reflection of one of those summer’s day in Europe with not much to really pin any market moves on.</p><p style=““ class=“text-align-justify“>The euro crept higher a little alongside the pound as the dollar was a little sluggish but ultimately, the moves aren’t anything that stands out from a technical perspective. EUR/USD moved up from 1.0200 to 1.0247 before holding around 1.0220 levels now.</p><p style=““ class=“text-align-justify“>USD/JPY remains more pensive in and around the 135.00 mark as bond yields push a little higher after yesterday’s drop. All eyes are on the US CPI data tomorrow to really firm up any convictions.</p><p style=““ class=“text-align-justify“>Meanwhile, commodity currencies are a fair bit languid but the ranges against the dollar remains somewhat tight (less than 30 pips) so I wouldn’t look much into it. AUD/USD is down 0.2% to 0.6970 levels now as risk appetite is sapped a little with US futures trading slightly lower ahead of North America trading.</p><p style=““ class=“text-align-justify“>The US consumer inflation report in the day ahead can’t come soon enough.</p>

This article was written by Justin Low at www.forexlive.com.

<p style=““ class=“text-align-justify“>At the lows today, WTI <a target=“_blank“ href=“https://www.forexlive.com/terms/c/crude-oil/“ target=“_blank“ id=“e1f1b115-23d2-48c8-98c8-24024dada457_1″ class=“terms__main-term“>crude oil</a> was down to $89.05 but was holding around $90.00 before the headlines crossed. It is now trading up to $91.70 as Reuters is reporting that Russia has suspended oil exports via the southern leg of the Druzhba pipeline amid transit payment issues.</p><p style=““ class=“text-align-justify“>It is said that the payment from Russia’s pipeline monopoly, Transneft, to Ukraine’s pipeline operator, Ukrtransnafta, did not go through. For some context, the flows here i.e. southern part of the Druzhba pipeline, goes towards Hungary, Czech Republic, and Slovakia.</p><p style=““ class=“text-align-justify“>Update: Transneft has come out to say that the northern part of the pipeline, in which flows goes towards Germany, is unaffected.</p>

This article was written by Justin Low at www.forexlive.com.

<ul><li>Prior 89.5</li></ul><p style=““ class=“text-align-justify“>Small business optimism in the US edged up a little in July as fuel prices eased and job openings were marginally easier to fill. That said, inflation worries are continuing to intensify with 37% of business owners reporting that inflation was their most important problem – the highest share since Q4 1979.</p>

This article was written by Justin Low at www.forexlive.com.

<p style=““ class=“text-align-justify“>Sometimes it is best to be reminded of what goes beyond the headlines and when it comes to inflation numbers, markets may tend to get a bit carried away. So, it is always good to be wary and look in between the lines and not just overreact to what you see on the screens.</p><p style=““ class=“text-align-justify“>German inflation hasn’t quite shown signs of peaking just yet with the <a target=“_blank“ href=“https://www.forexlive.com/news/germany-july-preliminary-cpi-75-vs-74-yy-expected-20220728/“ target=“_blank“>July numbers</a> coming in higher than estimated. Sure, the headline figure (7.5%) might be off the May high of 7.9% but the EU-harmonised reading (8.5%) was higher than that of June, increasing to just shy of the record high seen in May at 8.7%.</p><p style=““ class=“text-align-justify“>With CPI data set to be a key focus everywhere in the months ahead, it is vital to be aware of the nuances and the possible factors impacting the numbers. In the case for Germany, the government had introduced subsidies on fuel and rail tickets for the months of June, July and August.</p><p style=““ class=“text-align-justify“>They slashed taxes on both petrol and diesel for the three months, although prices at the pump are still lofty. But they also introduced a public transport travel pass, which is effective for a travel period of one month, for just €9.</p><p style=““ class=“text-align-justify“>German finance minister, Christian Lindner, has already poured cold water on the idea that the ‚9-euro travel pass‘ will be extended. As such, there might be a spike in prices again come September when the subsidies are retired.</p><p style=““ class=“text-align-justify“>That will be something to be mindful about in case we do see another jump in German consumer inflation numbers for the month.</p>

This article was written by Justin Low at www.forexlive.com.